1H FY2014 Business Results

Transcription

1 1H FY2014 Business Results Six months ended September 30, 2013 FY2014: Fiscal year ending March 31, 2014 November 19, 2013 (TSE 4326) INTAGE HOLDINGS Inc. Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved.

2 Contents 1H FY2014 Results 1H FY2014 Progress and Future Issue FY2014 Earnings Forecast Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 2

3 1H FY2014 Results 1H FY2014 Progress and Future Issue FY2014 Earnings Forecast Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 3

4 Consolidated Financial Highlights Net sales posted a record high, but were below target Operating income, recurring profit and net income all declined year-on-year from deceleration in the drug development solutions business (Billions of yen) Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 4

5 Summary of Income Statements (Millions of yen) 1H FY2013 Actual 1H FY2014 Forecasts 1H FY2014 Actual Change YoY Consolidated: Net Sales 18,148 19,765 18, % Operating Income 1,056 1, % Recurring Profit 996 1, % Net Income % EPS (Yen)* Non-Consolidated: Net Sales 12,889 13,712 13, % Operating Income , % Recurring Profit 877 1,069 1, % Net Income % *On October 1, 2013 the Company implemented a stock split at a ratio of two shares for each share of common stock. The net income per share is calculated assuming this stock split took place at the beginning of the previous consolidated fiscal year. Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 5

6 Summary of BS and CF Consolidated Balance Sheets Mar Sept Change Details Current assets 18,269 17, Decrease in notes and accounts receivable-trade Noncurrent assets 11,128 10, Decrease in lease assets, net Total assets 29,398 28, Current liabilities 7,729 7, Decrease in income taxes payable Noncurrent liabilities 6,174 6, Decrease in lease obligation Total liabilities 13,904 13, Shareholders equity 15,358 15, Decreases in retained earnings Valuation and translation adjustments Deference of foreign translation adjustments Minority interests Increase in new consolidated subsidiaries Total net assets 15,493 15, Consolidated Cash Flows 1H FY2013 1H FY2014 Change Details Cash flow from operating activities 1, Year-on-year difference in social insurance premiums Cash flow from investing activities Cash flow from financing activities Effect of exchange rate changes on cash and cash equivalents Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year 4,599 5,906 +1,306 Increase in cash and cash equivalents resulting from merger Cash and cash equivalents at end of year 5,070 5, (Millions of yen) (Millions of yen) Decrease in purchase of property and equipment and intangible assets Increase in repayment of short-term loans payable Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 6

7 Net Sales by Segment (Billions of yen) ( ): Change YoY; [ ] Composition Drug Development Solutions [16%] [13%] (+19.9%) (-2.0%) [18%] [12%] (-8.9%) (+7.9%) [16%] [13%] Orders declined in both monitoring and data management and analysis services under intensified competition System Solutions Sales from new and existing orders increased favorably with the recovery in Japanese corporate investment in IT systems. Marketing Research and Consulting [71%] (+9.0%) [70%] (+3.7%) [71%] <Syndicated Panel Data Services> Sales of SCI-personal (nationwide individual consumer panel data) and i-ssp (INTAGE Single Source Panel) rose New consolidated subsidiary JMIRI contributed to increased revenues <Custom Research> Sales in global research in the ASEAN region increased. INTAGE CHINA posted decreased sales as orders remained slack again following the previous term. 1H FY2011 1H FY2012 1H FY2013 Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 7

8 Breakdown of Sales of the Marketing Research and Consulting Segment (Billions of yen) ( ): Change YoY; [ ] Composition Marketing Research and Consulting Custom Research [37%] (+16.5%) [39%] (+6.0%) [40%] Traditional Research Models (Mail surveys, Interview surveys, etc.), Internet Research Syndicated Panel Services SCI-personal (nationwide Individual consumer panel data) i-ssp (single source panel) SRI (FMCG retail panel data) SDI (syndicated OTC drugs panel data) [63%] (+4.7%) [61%] (+2.2%) [60%] SPI (In-store promotions effectiveness measurement) SLI (syndicated female consumer panel data) JMIRI prescription information analysis service 1H FY2011 1H FY2012 1H FY2013 Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 8

9 Operating Income by Segment (Billions of yen) Marketing Research and Consulting <Syndicated Panel Data Services> Profits rose on increased sales of SCIpersonal and i-ssp. <Custom Research> Profits increased from increase in sales for global research. INTAGE CHINA posted decreased profits on worsened order conditions and increased operating costs for restructuring. System Solutions Profits increased from higher sales with improved order circumstances. 1H 11/9 FY2011 期 1H FY /9 期 1H FY /9 期 Drug Development Solutions Profits decreased from a decline in new orders and increased leading investment in international business. Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 9

10 1H FY2014 Results 1H FY2014 Progress and Future Issue FY2014 Earnings Forecast Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 10

11 Basic Group Policy for FY2014 Establish overwhelming competitive advantages in priority fields Ultimate customer relations and weapons to compete Keywords toward Growth Mobile Create markets and capture share together with DOCOMO InsightMarketing, Inc. Global Accelerate global development by creating new weapons to compete Healthcare Group synergy strategy and rebuilding the story Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 11

12 Business Segments and Group Companies Segments Marketing research and consulting 1. Syndicated Panel Services Consumer panel data Retail panel data Other panel data 2. Customized research Internet research Traditional Research Model (Interviews, qualitative research, MROC, CLT, etc.) System solutions Software development and sales System administration, maintenance and management Data center administration Drug Development Solutions CRO Clinical monitoring Data management and analysis Group companies INTAGE Inc. INTAGE RESEARCH Inc. INTAGE NAGANO Inc. ANTERIO Inc. Japan Medical Information Research Institute Inc. PLAMED Inc. DOCOMO InsightMarketing, INC. (an equity method affiliate) INTAGE CHINA Inc. INTAGE (Thailand) Co., Ltd. FTA Research and Consultant, LLC INTAGE INDIA Private Limited INTAGE SINGAPORE PTE. LTD. Consumer Search Hong Kong Limited * PT. INTAGE INDONESIA * (14 companies) INTAGE Inc. INTAGE NAGANO Inc. ASKLEP Inc. RPS Asklep Inc.* ASKLEP CHINA Inc. ASKLEP TAIWAN Inc. ASKLEP KOREA Inc. (21 companies, incl. INTAGE HLD and INTAGE ASSOCIATES) (Two companies) (Five companies) *Consolidated from this period Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 12

13 1H FY2014 Progress Domestic [INTAGE Inc.] Cross media (i-ssp) succeeded in expanding windows in agencies and mass media, and sales increased In the consulting field, new business development overseas related orders were received, securing sales above the target Received large systems orders in the financial, travel and health information fields Competitive advantages in publication POS service by expanding data, and value improvement made users beyond 120 companies [ASKLEP Inc.] Large decline in new orders from intensified competition Joint venture with RPS delayed because of RPS acquisition and merger [DOCOMO Insight Marketing Inc.] Consumer panel trial adopted by multiple companies [INTAGE RESEARCH Inc.]. Received large public orders from government organs which will contribute to sales from the second half [ANTERIO Inc.] While the market scale for Impact Track contracted from price competition, the simplified custom research TenQuick greatly contributed to revenues Overseas [INTAGE CHINA Inc.] Marketing research and consulting System solutions Advancing restructuring of both business and human resources Drug development solutions [INTAGE (Thailand) Co., Ltd.; FTA Research and Consultant, LLC] Somewhat sluggish conditions, but large orders are concentrated in Q4 for a recovery in the second half Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 13

14 Actions for Q3 and Q4: Marketing Research and Consulting, System Solutions Publishing Strengthen publishing POS service Begin joint business with Culture Convenience Club Co., Ltd. (CCC), which has the top sales in the bookstore industry. Begin providing daily data on 700 stores that are members of CCC s TSUTAYA BOOK NETWORK to about 120 publishing companies that are members of the HI-NET INTAGE Publishing POS Service from October 1 (INTAGE is the first to transmit daily data from CCC) POINT Addition of the number of books shipped and the number returned along with the actual sales Data provision frequency increased from monthly to daily Makes it possible to grasp sales ratios and inventory ratios Data more directly tied to marketing Lifestyle Support Government Sector Expand sales with the smart phone research service Smart being released from this period With the release of the smart phone research service Smart the variation of research to match customer issues will increase. This will expand derivative research in a way that is positive for both basic research and ongoing research Maintain strong orders and a large contribution to sales Consignment of all business structure prior conditions confirmation works for the FY2014 Economic Census Basic Survey and the FY2014 Census of Commerce (Ministry of Internal Affairs and Communications) (contract price: 499 million) FY2013 Basic Survey on the Communications Industry (Ministry of Economy, Trade and Industry) (contract price: 60 million) First half of the FY2013 Census of Manufactures (Ministry of Economy, Trade and Industry) (contract price: 60 million) Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 14

15 Actions for Q3 and Q4: Global China Conduct organizational restructuring aimed at a V-shaped recovery next period Prepare systems for response to healthcarerelated works Expand sales in automobile-related research Launch sales of POS data Review Human Resources Reorganize and downsize offices Strengthen the governance structure India Conclude a business alliance contract with RSMRS Joint use of offices from next January - Strengthen collaboration structure [R.S. Market Research Solutions] Established in India in 2002 Independent market research company with a researcher network across all of India Has bases at 10 locations in India Internationally develop the same types of solutions that INTAGE provides in Japan Korea Business Cooperation with Hankook Research Aim at the development of a strategic business partner relationship [Hankook Research] Independent market research company with four bases in South Korea Number four firm in South Korea, number one in domestic investment market research Sales of 56.5 billion won (about 5.1 billion) Indonesia Establish PT. INTAGE INDONESIA JV with DEKA Marketing Research Combine the diverse solutions of the INTAGE Group with DEKA s knowledge of Indonesian consumer s habits, lifestyles and values Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 15

16 Actions for Q3 and Q4: Healthcare ASKLEP ANTERIO JMIRI Certain execution of measures to break through the current conditions Review suitable personnel and systems Optimize work processes and manhours Revise the range of works Expand the service line Propose new service models Full-scale launch of JV with RPS Take over business from PharmaForesight (from Nov.) Overseas research by domestic companies and domestic research by foreign companies, and strengthening research in Asia Build up an infrastructure in Asia Release of Adherence analytical tool for pharmaceutical companies Enables analyses of patient drug use conditions (prescription continuation rate, number of days of administration) based on anonymous large-scale prescription data [Example data uses by pharmaceutical companies] Development of orally disintegrating tablets for people with difficulty swallowing Development of compound medicines with multiple ingredients in one preparation Development of programs to prevent people from forgetting to take their medicines Adjust direction toward achieving the term-end targets and aim at differentiation versus competitors Further grow custom research and achieve the long-term goal from a Japanese leader to an Asian leader Expand services into the osteoporosis, dementia, thrombosis and hypertension therapeutic medicine fields, and improve quality Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 16

17 INTAGE Group Proposal Cyclical Marketing Cyclical means A comprehensive model of consumer purchasing and information behavior New product development Complete coverage of both consumer originated and information originated data, assuming marketing actions for every step of the cycle Referred customers Campaigns Advertising Behavior leading to purchasing Media exposure Information search Collection for consideration Homepage Brand reviews In-store promotions Behavior at the purchasing location Changes or strengthening of attitude Unplanned buying Behavior after purchasing Consumer satisfaction Loyalty Information transmission On-line communities Electronic Commerce Social networks Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 17

18 What can be done using single source data? Advertising agencies Know the target Automobiles Media planning Know the media Lifestyle support Publishing Results measurement Tracking Mass communications Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 18

19 Launch of joint research to grasp the relationship between purchasing behavior and tweeting m y For Immediate Release: News release October 22, 2013 INTAGE Inc. DOCOMO InsightMarketing, INC. NTT DATA CORPORATION Launch of joint research to grasp the relationship between consumers transmission and receipt of information on Twitter and purchasing behavior ~Single sourcing and analysis of Twitter tweet data and purchasing behavior data~ INTAGE Inc. (head office: Chiyoda-ku, Tokyo; President and Representative Director: Noriaki Ishizuka), DOCOMO InsightMarketing, INC. (head office: Minato-ku, Tokyo, President and Representative Director Yoshiyuki Murakami) and NTT DATA Corporation (head office: Kotoku, Tokyo; President and Representative Director Toshio Iwamoto) have initiated joint research to grasp the relationship between consumer s Twitter information receipt and transmission and their products and services purchasing behavior. The three companies will link and analyze multiple data regarding consumer purchasing behavior, and aim at providing information and services to make corporate marketing more effective through research grasping the relationships among these data. Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 19

20 Integration of Monitors to Support Research for the Cyclical Era Accelerating Response to Multiple Devices all at Once Full-time monitors who are deeply involved with the research Solid response to every type of research About one million INTAGE Cue monitors Integration of two types of monitors from January 2014 Birth of the industry s largest monitor force to support the research of the future Mighty monitors Fresh collaborators with wideranging characteristics who are not registered as existing questionnaire monitors About 3.14 million docomo Premier club Excluding duplications with Cue monitors For clarification, Monitors means Panelists docomo premier club is a registered trademark of NTT DOCOMO. Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 20

21 1H FY2014 Results 1H FY2014 Progress and Future Issue FY2014 Earnings Forecast Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 21

22 FY2014 Earnings Forecasts Marketing research and consulting System solutions Drug development solutions Consolidated FY2013 Actual FY2014 Forecasts As of May 21 As of Nov. 19 Change YoY FY2014 Forecasts Change YoY Net sales 28,327 31, % 31, % <Syndicated panel data services> 15,980 16, % 16, % <Custom research> 12,347 14, % 14, % Operating income 2,860 3, % 3, % Net sales 4,964 5, % 5, % Operating income % % Net sales 6,638 6, % 6, % Operating income % % Net sales 39,930 43, % 43, % Operating income 3,309 3, % 3, % Recurring profit 3,213 3, % 3, % Net income 1,249 1, % 1, % The above performance forecasts were based on information available at the time they were prepared and incorporate various uncertainties, so actual performance may differ materially from these projected figures. (Millions of yen) Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 22

23 Consolidated Numerical Targets (FY2014-FY2016) FY2014 (Forecast) FY2015 (Forecast) (Billions of yen) FY2016 (Forecast) Net sales Change YoY +7.8% +7.0% +7.4% Operating income Change YoY +9.0% +10.9% +12.5% The above performance forecasts were based on information available at the time they were prepared and incorporate various uncertainties, so actual performance may differ materially from these projected figures. Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 23

24 Basic Policy on Earnings Distribution INTAGE HOLDINGS basic policy is to distribute earnings in consideration of the balance between dividends and retained earnings, based on the consolidated results. INTAGE HOLDINGS considers the return of earnings to shareholders to be one of its highest management priorities. Year-end Dividends Payout Ratio (Consolidated) DOE (Consolidated) Yen % % FY FY FY2014 (Forecast) (Note) On October 1, 2013 the Company implemented a stock split at a ratio of two shares for each share of common stock. The (projected) year-end dividend for the year ending March 2014 is stated considering the impact from this stock split. Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 24

25 INTAGE HOLDINGS Inc. Copyright 2013 INTAGE HOLDINGS Inc. All Rights Reserved. 25